McNally Bharat Engineering Jolt from Extras, Retain BUY:: Emkay

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McNally Bharat Engineering

Jolt from Extras, Retain BUY

BUY

CMP: Rs 135                                       Target Price: Rs 201

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n     Good standalone performance – (1) revenue grew 28% yoy to Rs3.6 bn (2) 260 bps increase in EBITDA margin to 6.7% and (3) APAT grew 24% yoy to Rs76 mn

n     However, Extras disappoint –MSE reports Ebidta margin of mere 11.3% and 26% yoy drop in APAT – Misses to report CMT performance

n     Tones down FY12E revenue by 10% to Rs27 bn. Reiterates EBITDA margin guidance of 8-9% - led by MSE and CMT

n     Revise FY12E & FY13E earnings by -22% (Rs20.1) and -20% (Rs26.6) - Retain BUY rating with revised target of Rs201